Documents Required To Buy A New Car In India

After a lot of research and deliberation, you finally decide on the car you want to buy. Once you seal the agreement with the car dealership, the next step would be the registration and insurance procedures. The paperwork involved in the process of registering the car can be intimidating. We have listed the processes and documents here for your reference and ease of understanding.

Booking The Car:

When you book the vehicle, it is important to ensure that the person taking the loan gets the car registered in his/her name. If you do not adhere to this, you may face trouble at the time of registration. The documents required for booking the car are as follows:

1. Proof of nationality - Voter ID, school certificates, or passport
2. ID proof - Driving license, PAN Card, Passport, or Aadhaar
3. Address proof - Electricity bill of the customer, house purchase agreement, ration card, or rent agreement (if applicable)

You should remember to get all details in writing, including the delivery date of the vehicle, price, add-ons, accessories, and discounts availed. The down-payment made and the on-road price of the car should also be recorded in writing. Ensure that you are aware of the processes involved in situations like delay in car delivery or cancellation of booking. Also, make sure that you have all the relevant receipts, temporary Registration Certificate, PUC Certificate, owner’s manual, warranty cards, and roadside assistance number.

Car Insurance Formalities:

Before we get to the documentation required for registering the vehicle, let us take a look at the process for narrowing down on a suitable insurance policy for your car. You should ideally compare car insurance between providers before you actually buy the car. Buying insurance from the dealership is not always the best solution as far as cost-effectiveness of the policy is concerned.

You should be aware of the fact that it takes only a few minutes to buy insurance online. Online policies are also cheaper and easy to maintain, and these offer greater security to the buyer. Additionally, it is possible to refer to these policies whenever required - all you need is an internet connection. The chances of misplacing the documents are minimised considerably as well.

The car insurance policy documentation is required for the registration of the vehicle. So, keep this ready in order to ensure a smooth registration process.

Documents Required For Vehicle Registration:

After the purchase of a new vehicle, the owner must get the car registered within 7 days from the delivery date. This is mandated by Section 39 of the Motor Vehicle Act, 1988. The documents required to apply for the registration of the car are:

1. Updated Form 20 - This is the application for the registration of a motor vehicle. A duplicate of this form with the Registering Authority’s endorsement should be returned to the financing bank at the same time
2. Form 21 - This is the sale certificate that will be issued by the dealer or car manufacturer
3. Form 22 - This is also referred to as the road-worthiness certificate and is provided by the vehicle manufacturer. The dealer will hand it over to the car owner when the vehicle is delivered
4. Attested copy of the valid insurance policy
5. Identity proof of the car owner
6. The owner’s proof of residence
7. PAN Card, Form 60, or Form 61, whichever is applicable
8. In case the vehicle was imported, the customs clearance certificate will have to be enclosed along with the application
9. Challan receipt
10. Affidavit on a non-judicial stamp paper worth Rs.3
11. Chassis pencil print

In case the vehicle is under a loan, Form 34 should be signed by the financing bank and the car owner and submitted. The applicant should also pay the applicable road tax and prescribed fee. In certain cases, the fitness certificate of the vehicle will have to be submitted.

Documents Required For Vehicle Re-Registration When Transferred Between States:

The documents needed to re-register a vehicle when it is brought from one state to another are as follows:

1. The original state registration certificate
2. Duplicate copy of Form 28 (NOC)
3. Form 27 - This is related to tax
4. Form 20
5. An attested copy of the car owner’s address proof
6. An attested copy of the car’s valid insurance
7. An attested copy of the Pollution Under Control certificate
8. For commercial vehicles the fitness certificate is needed
9. PAN Card, Form 60, or Form 61, as applicable

The road tax and the registration fee should be paid by the applicant. In some states, it is necessary to get clearance from the National Crime Record Bureau for re-registration of the car. The Transport Department will arrange for the Clearance Certificate.

If the vehicle is bought through a loan, it can be endorsed in the RC. The documents for the same are as follows:

1. Original registration certificate
2. Two copies of Form 34 filled in
3. An attested copy of the valid insurance policy
4. The address proof of the owner of the vehicle, attested
5. The PUC certificate, attested
6. Attested PAN Card copy, Form 60, or Form 61

The prescribed fee for the process should also be paid by the applicant.

In case the vehicle is bought through a loan that is later repaid, this can be endorsed in the RC by submitting the documents mentioned below:

1. Original registration certificate
2. Two updated copies of Form 35
3. A certificate from the financing bank stating that all dues have been paid
4. Valid insurance copy, attested
5. Address proof of the registered owner of the vehicle, attested
6. PUC certificate, attested
7. Attested copy of the owner’s PAN Card, Form 60, Form 61, as applicable
8. NOC from the financing bank

The prescribed fee also needs to be paid.

Process For Obtaining Noc When The Car Is Transferred To Another State:

If the owner of the vehicle takes it to another state, the vehicle will have to be re-registered there. The NOC can be applied for through the completion of the following formalities:

1. Application to be submitted on Form 28 - 4 copies
2. Copy of the RC, attested
3. Road tax payment evidence
4. Certificate from the tax collection authority indicating that there are no tax dues
5. Valid insurance and PUC certificate